Many people are convinced that in order to make real money in the Direct Sales Industry, their focus needs to be directed toward building a team, or shall I say “recruiting” other people to do what they do. To some extent that is true and it might be the only way you make any money with certain direct selling companies.
Let me start with the somewhat confusing basics:
Direct Selling – The parent company utilizes people like me to sell their products directly to consumers instead of them setting up shop somewhere. I purchase the right to sell their products. Two business models fall under direct selling, such as:
- MLM – You try to convince other people to sign up with the company you are enrolled in, and maybe you are still selling but a little less than before (direct selling). You receive money for each new recruit. The more you recruit and the more your recruits recruit, your compensation and your level increase. You are creating a downline.
- Network Marketing – You are telling everyone about the product. You are the marketer. For every product sold (direct selling), you get commission.
I currently do a lot of Network Marketing. I educate myself about the products I am trying to sell, identify consumer needs, educate customers, and finally, finish with a sale.
Show me the money!
People who are in desperate need of cash and decide to join any direct sales company to fulfill this need, might be setting themselves up for failure. They need to have some skills in regards to running a business, such as, selling, managing a team, and most importantly managing the finances. Most people who join a direct selling company when they are in a financial bind are the first ones to give up, especially when money doesn’t appear right away. If you are in need of fast cash and do not have the essential skills required for this type of business, please hold off in signing up with a direct sales company right now or you might end up in a worse predicament than you already are. Direct selling isn’t going away anytime soon.
Recruit, recruit, recruit!
Why are we focusing so much on recruiting and little on developing our product knowledge or our focus on true direct selling? Is it easier to convince someone to invest in a business or to get them to purchase a product? If you lie or manipulate people into thinking they can get rich quick, then you may do well, but only for a little while. Just think, if every direct selling company promised a get rich quick scheme, why are so many people still broke, why is there an increased rate of unemployment, foreclosures on homes, and lastly, why are direct sellers working another job. There is no such thing as a get rich quick scheme, even at the most slimiest jobs out there in the world. Everything comes with a sacrifice or a price.
Recruiting is still at the top of everyone’s list and I can understand because you can make easy money recruiting without having to do a whole lot on your end. However, keeping the new recruit is where things can get a little rough. As I mentioned earlier, most people who join a direct selling company don’t typically have all the skills required to be successful in the industry. If your recruits don’t get help from you or someone else, they will fail, which means, you can fail too. If you focus only on recruiting and nothing else, you will be in for a bumpy ride.
How would you feel if you were recruited and then never talked to again? I had a lady call me daily trying to convince me to join her team. I believed so much in the product that I decided to buy it for myself and become a team member. After she enrolled me and I received my first product in the mail, that was it. I had the essential skills required to do this business, but I had little information as to what to do next in this one. As soon as I joined, she stopped calling me. When I did speak to her, she never answered my questions. I wanted to stay in the business, but wanted to change my upline. Eventually, I had to call customer care to get hundreds of my questions answered. They told me I didn’t need her and they could help me. Happily, I still work the business, I just don’t bother with her anymore. She showed me she only cared about making money and I don’t ever want someone to feel that way with me.
So you think you can sell?
The first direct selling company I joined didn’t work so well for me because I didn’t know much about the products I was going to sell. The catalog filled with products of different categories was huge. Everyone bragged about how great the products were. However, I found myself in situations where I couldn’t answer certain questions about the particular items I was demonstrating. Naturally, I wasn’t making very many sales. After some time, I increased my knowledge and confidence about the product I was selling. I focused more on learning about all the products, tried them out before I talked about them, and then I listened for and fulfilled customers needs. For me, recruiting came at a later stage. If you recruit too fast (which I have also done), you might end up being useless to them, because you don’t know everything about the business yourself to educate them.
Selling is a lot easier to do because our biggest consumer in the world is women. Most direct selling companies sell products targeted for women and to be sold by women, even though I think men have the potential to sell to women easier. If you use a great product, people will notice and want it too. Remember, women are the first and probably last people to comment on your new perfume, the bag you are carrying, or the lunch container you just put in the microwave at work. You might not have to have perfect selling skills, but are excellent at marketing your products without much effort.
Recruit or Sell? Here is what I have to say:
- Learn before you earn. Your first potential customer might appear moments after you sign the contract, so it is better to be prepared and know your stuff.
- Sell before you tell. Spread the word about the amazing products you sell. Remember the product you have can’t be found in any store. You are the one people will run to when they need that special cream, or a pot, or bag. When you have established a significant level of customers over a period of time, you have built a relationship.
- Reach before you teach. You are doing so well at selling, but some of your customers might actually be interested in doing what you do. You should be at the level where you can start talking confidently about the business opportunity. You have the opportunity to find and influence potential recruits. I say potential because not every one interested in joining your team will have what it takes to do this business. You need to explain to each person what is required and expected from them.
- Sow so you can grow. Having a team doesn’t mean that you are going to start seeing big bucks right away. You need to train your team, and share your knowledge so they too can grow a team. If you keep all of your hottest selling or recruiting tips to yourself, you team might become frustrated and eventually fail. Say bye bye to your team if that happens. It’s alright to share your skills with them, you are all out to achieve the same goal. Everyone deserves the right to succeed like you, so help them and you will reap the benefits.
Please feel free to add. I’d love the wonderful comments I receive.
Read: The Obstacles You Might Find In Direct Selling
I am a direct seller for three amazing brands and through my journey I encounter situations that I feel it is necessary to write about. If you have a topic that you would like to share, please let me know. Our direct sellers in the world are all entrepreneurs who are constantly seeking tips or advice from every angle.
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Love it! I honestly target educators for my business more than sales professionals for this very reason. They take the time to teach others how to replicate the system. People who are open to learning new skills excel as well.
Yes!!! We need to keep the ball rolling by teaching others skills that always have positive results.
Thanks for your awesome feedback!!! Love it!
I’m fortunate to be involved with a hybrid company. We do recruit, but none of the sales force in the field receives any compensation for adding a new person to the team. The only time a commission is paid is when the product (in this case, a membership) is marketed. So we don’t think in terms of Recruit OR Sell. Rather, we Recruit TO Sell! That was a paradigm shift for me, for it blends MLM with Network Marketing in a way that stresses providing adequate training and helping new teammates have rapid success. New people get to leverage the experience of those who recruited them, and thus actually earn WHILE they learn (through shadowing, then mirroring). But, at it’s core, the key to success in this industry is training. Thanks for such a spot-on post!
Wow! That is the first company I hear works in such manner. Thanks for sharing this valuable information.